Canada’s Eastern Platinum Limited (Eastplats) reports it has reached a definitive agreement with Hebei Zhongheng Tianda Platinum Co Limited (HZT), a private company incorporated in the People’s Republic of China, whereby HZT will acquire Eastplats’ South African subsidiary, Barplats Mines Limited, for US$50 million. Barplats holds the Crocodile River Mine (CRM) near Brits.
Upon closing (expected within six months), HZT will assume operating responsibility for CRM and ownership of Barplats Mines Limited. Eastplats will continue to maintain ownership of its Eastern Limb projects, which include the Mareesburg, Spitzkop and Kennedy’s Vale projects.
A file shot of the Crocodile River Mine near Brits. The mine has not been operational since 2013.
“We are pleased that HZT’s plans to inject foreign capital and the creation of much needed jobs will stimulate socio-economic development in areas surrounding the CRM mine,” said David Cohen, President and CEO of Eastplats. “We will retain our large and shallow eastern limb PGM project base. While the PGM sector remains under pressure, closing the transaction will leave Eastplats extremely well capitalised.”
Eastplats says that “HZT has represented and warranted to Eastplats that it is not connected with Hebei Zhongbo Platinum Co. Ltd, the company which had a previous arrangement to acquire all of Eastplats’ South African assets (as disclosed in the company’s press release dated November 7, 2014). That transaction was not completed due to ongoing shareholder disputes within Hebei Zhongbo Platinum Co Ltd.”
Originally developed in the 1980s by Loucas Pouroulis' Lefkochrysos, CRM has been mothballed and restarted several times since. Eastplats placed it on care and maintenance in 2013.
